A federal judge issued a stay on Friday regarding the mass layoffs that occurred at the U.S. Consumer Financial Protection Bureau (CFPB) the previous day. Judge Amy Berman Jackson expressed serious concerns that the Trump administration may have breached existing court orders that regulate the conditions under which employee terminations can take place.
The CFPB executed the dismissal of approximately 1,400 to 1,500 employees, impacting nearly 90% of its workforce, in a move that has attracted significant scrutiny.
On Friday morning, a witness testimony accused high-ranking officials, along with a representative from Elon Musk’s Department of Government Efficiency, of ignoring court mandates. The testimony alleged that a DOGE member enforced a grueling 36-hour work shift without breaks and subjected staff to verbal harassment.
Last week, an appellate court specified that any firings at the CFPB must be preceded by a “particularized assessment.”
Mark Paoletta, chief legal officer of the CFPB, asserted in a sworn statement that the agency adhered to judicial instructions and performed a thorough evaluation of its staffing requirements. According to Paoletta, this assessment revealed that the agency’s resources surpassed both its operational demands and statutory limits.
Neither the White House nor the CFPB responded to requests for comment at the time of reporting.
Both President Donald Trump and Elon Musk have called for the dissolution of the CFPB, voicing unsubstantiated claims of political bias in its enforcement actions and wasteful spending. However, government representatives have indicated in court proceedings that the CFPB will continue to function in some capacity.
During the hearing prompted by the recent layoffs, Judge Jackson remarked, “I am deeply concerned given the scope and speed of the agency’s action…about whether the agency is now in compliance with the preliminary injunction.” She has ordered an immediate suspension of the mass firings until deliberations on the government’s compliance with her ruling can take place. Furthermore, she stated that employees of the CFPB would retain access to their computer systems, contrary to what agency leadership communicated in the dismissal notices issued on Thursday.
